Latest figures shared by property listings website Rightmove reveal house asking prices have hit record levels across all regions of Great Britain. The average price of properties coming to market rose by 0.8 per cent month on month in June to a third consecutive record of £336,073. This is the highest June increase in the evaluator's index since 2015.
Meanwhile, the huge increase in sales as compared with the pre-pandemic period appears to have waned. The number of sales agreed in May was 17 per cent ahead of the same point in 2019, after sales in April were up by 45 per cent compared with two years earlier.
Rightmove's director of property data, Tim Bannister said there were “early signs of a slowing in the frenetic pace” of house sales. However, this was partly down to high prices coupled with the number of houses on sale hitting an all-time low. Bannister said, “ Record low interest rates and stamp duty tax reliefs have helped many to afford higher prices, satisfying their pent-up desires for a new home fit for a new era. Some of that demand has now been met, and the phasing out of stamp duty reliefs has also taken away some of the urgency to move, though our high traffic and search data indicate that there is still strong buyer demand.”
Bank of England's chief economist Andy Haldane said that Britain's housing market was “on fire” because of the government’s stamp duty tax breaks as well as increased demand from richer households with more savings after lockdowns. There also seems to be demand for more space since the coronavirus began.
Rightmove's data is based on asking prices of houses on its platform. Data from the Office for National Statistics (ONS), which is based on completed purchases, shows lower average house prices but paints a similar picture. ONS data showed house prices peaked at £256,000 in March 2021 but with strong price increases across the four nations of the UK. Its measure of the average UK house price dipped to £251,000 in April but that was still £20,000 higher than in April 2020.
